9-Attachment B Scope of Work amended.pdf

Scope of Work – Scholarship Granting Organization (SGO) Purpose: This contract is for a scholarship-granting organization to administer the Carson Smith Opportunity Scholarship. The Utah State Board of Education (USBE) does not disburse funds under this contract; rather, the contract establishes program requirements and limits for administrative and marketing cost allowances.

Background: The Utah State Legislature created the Special Needs Opportunity Scholarship Program for students in Utah, codified in Utah Code §53E-7-401 et seq.

1. General Administration and Compliance The Vendor shall administer the Carson Smith Opportunity Scholarship Program in accordance with Utah Code §53E-7-401 et seq. and Board Rule R277-626-1 et seq. The Vendor shall maintain Internal Revenue Service 501(c)(3) status, ensure FBI Rapback enrollment for all officers and employees, maintain all required records, and conduct annual training for all participants.

1A. Program Implementation Timeline The Vendor shall implement and operate the program according to the annual cycle described below. Timelines for Year 1 may be adjusted due to implementation delays or programmatic adjustments.

January – February: Concentrated Outreach and Data Collection

Coordinate outreach events with partner schools; gather satisfaction and performance data from returning families; and utilize collected data for communications, reporting, and donor engagement.

March – May: Application Period

Accept and process applications on a first-come, first-served basis, subject to priority deadlines for full-year tuition scholarships, and assist families with LEA notification.

June – August: Family Orientation and Training

Conduct orientation, training, and support activities for new families and host planning meetings for partner school administrators and faculty.

September – October: Back to School

Verify student enrollment, conduct school site visits, assist with school transitions, and limit or close applications as necessary.

November – December: Planning

Plan for the next application cycle, fiscal year, and academic year, including award amounts, caps, compliance, and outreach strategies.

2. Application Systems and Eligibility Determination Maintain a web-based electronic application system that is accessible, fair, and automated, supporting families, schools, donors, and stakeholders.

Eligible disabilities under IDEA include: Autism; Developmental Delay (ages 3–8);

Emotional Disturbance; Hearing Impairment; Intellectual Disability; Multiple Disabilities;

Orthopedic Impairment; Other Health Impairment; Specific Learning Disability; Speech or Language Impairment; Traumatic Brain Injury; and Visual Impairment, including blindness.

Verify eligibility through an Individualized Education Program (IEP) or multidisciplinary determination, proof of Utah residency, and household income documentation.

3. School Participation and Monitoring Receive and review School Commitment Forms, determine school eligibility, and monitor participating schools through enrollment verification and site visits.

4. Award Determination and Notification Review completed applications on a first-come, first-served basis, subject to priority rules and available funds. Provide written award notifications, maintain appeals and waiting list processes, and allow families to accept, decline, or transfer awards.

5. Scholarship Disbursement and Financial Management Administer scholarship funds as restricted funds using Generally Accepted Accounting Standards. Disburse funds directly to qualifying schools or reimburse parents upon approval.

Process and issue scholarship payments quarterly by check or approved electronic method, reconcile disbursements, and ensure year-end accounting accuracy.

5A. Restricted Funds Management and Reimbursements The Vendor CEO must be qualified and experienced in managing state education and nonprofit restricted funds. Restricted and unrestricted funds shall not be commingled and shall be tracked using separate object codes. Recovered scholarship funds shall remain restricted.

6. Student Status Monitoring Monitor continued private school enrollment, student profile changes, and eligibility renewals every three years.

7. Reporting, Deliverables, and Milestones Provide required reports quarterly in 2026–2027 and biannually thereafter, including tuition data, financial records, student counts, award amounts, eligibility standards, demographic data, discrimination complaints, and other information requested by the Superintendent.

Provide updated tuition rate lists at the beginning of each school year, sample training materials with the July 31 submission, and proof of a performance bond or monthly financial reports detailing funds collected and expenditures.

8. Implementation and Marketing Plan Develop branding and marketing materials; identify donors, community and business networks; distribute tax credit information; recruit qualifying schools; and conduct community outreach.

9. Data Governance and Information Security Incorporate Generally Accepted Information Principles (GAIP), implement data protection best practices, adopt CIS Controls, assign Data Manager and Information Security Officer roles, conduct audits every three years, and follow established data breach response procedures.

10. Financial Accountability Submit annual CPA-prepared financial reports. If scholarship awards exceed $500,000 annually, obtain an independent annual audit and submit it to USBE.

11. Conflict of Interest No officer or employee may have a personal or professional relationship with a qualifying school that would create a conflict of interest, favoritism, or bias.

12. USBE Responsibilities USBE shall create the tax credit certificate form for vendor use, monitor vendor compliance with state law, and recommend remedial action when necessary.

13. Project Budget The Vendor is authorized to collect program donations up to the maximum amount allowed by statute 53E-7-407 (4) (b) for each calendar year. The annual maximum collection amount shall be adjusted as follows:

If the total program donations for the previous calendar year exceed 90% of the cap amount for that calendar year, the cap for the current calendar year is the cap amount for the previous calendar year increased by 10% plus a percentage equal to the percentage of growth in the participation of the program from the previous calendar year; or

The maximum amount of carry-forward funds is forty percent (40%) of donations collected during the fiscal year. Any amount in excess of forty percent (40%) shall be remitted to the State Treasurer.

The Vendor shall administer all program funds in accordance with the following allocation requirements:

At least ninety-two percent (92%) of funds shall be expended on scholarships.

No more than five percent (5%) of funds may be expended on program administration.

No more than three percent (3%) of funds may be expended on marketing and fundraising costs.

All interest earned on investments shall be expended solely on scholarships.

The cap for 2025 was $5,940,000, future years will be adjusted based on statute.